Technical Analysis | Stock Market Timing Signals | Top Stock Picks

There are no indications that the current stock market trend is going to lose a significant amount of steam soon.

The media now is claiming that the usual September sell-off is going to happen on October.

Wow, like I mentioned earlier this week if you keep predicting a sell-off is around the corner, sooner or later you are going to be right!

But is that any way to make money trading or investing in stocks?  It doesn’t work for me!

I prefer to let the stock market tell us what it’s doing now, not try to predict its action in the future.  If a reversal occurs we’ll be out before it hurts portfolio values significantly.  Meanwhile we’ll continue to buy stocks that are increasing in price in a market that is increasing in price.

Stay tuned to this newsletter and you’ll protect your portfolio also.

Let’s take a look at the charts for the weekly technical analysis wrap-up.

The monthly chart is continuing the bullish move with the CCI20 just a measly 3.08 points away from officially turning bullish.  This doesn’t mean a pullback won’t happen.  But the odds are increasing that the weekly strength is positively affecting the monthly chart which in turn increases the staying power of this current uptrend.

The weekly chart is again in a bullish mode with prices right on the upper trend line.  Prices are getting ever closer to the first resistance level at 11000.  We’ll watch to see what happens as this level is reached.

Prices on the daily chart again produced a “spinning top” candlestick pattern like yesterday.  Trading volume increased which would normally be a warning sign of a downdraft to come but much of the trading volume increase may have come from stock option position unwinding, unfortunately it’s tough to figure out how much.

So for today’s action we’ll chalk it up to another “indecision” day that could turn into a correction move.

The hourly chart provides a little more insight.  The move up tripped the hourly chart into a bullish mode but prices where pushed back down at the close with a topping tail candlestick.

Whether or not this last hour weakness carries through to Monday’s trading remains to be seen.

Hourly stock market prices have also fallen below the lower trend line with the expected push back to what is now resistance at the same line.

Trading Strategy:

A move up on Monday will provide an opportunity for new positions from our stock pick list. Wait until between 10 and 10:30 market time to confirm an up-day before putting on new long positions.  The market is vulnerable to a pullback from the recent run-up and now is not the best time to commit large portions of your portfolio to new positions.